April 25, 2024

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[THE INVESTOR] Daewoo Engineering & Construction is exceptionally underestimated, said Kyobo Securities on April 2, maintaining a “buy” recommendation and 8,800 won (US$8.32) target price.

Despite market concerns that its revenue might decline and it may suffer further losses from overseas projects, it will be able to post stable profits in the first quarter, said analyst Baek Gwang-je. As loss from overseas has been confirmed, its stocks will regain fast, he forecast.

Its revenue in the period will slide 5.8 percent on-year to 2.5 trillion won and operating profit by 33.4 percent to 147.2 billion won, estimated the analyst. 

Although its operating profit will miss market expectations from increasing burden of commodity prices and sharp decline in overseas orders, it is at a decent level, noted Baek.

By Hwang You-mee (glamazon@heraldcorp.com)